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DoT to complete process for 5G auction by August

Telecom dept’s working committee is examining regulator Trai’s views

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The government will be in a position to conduct the spectrum auction, including for next generation technology 5G in the second half of next fiscal, but no timeline has been decided as yet, according to a senior official.

"Telecom Regulatory Authority of India (Trai) has given a preliminary set of recommendations. Our (Department of Telecommunications) working committee is examining Trai's views. Another task force under DoT has also given broader set of (spectrum) bands on which we have to work. Since ecosystem is not ready, 5G will be ready after July-August next year," Sundararajan said on the sidelines of an event on Monday.

"We expect to complete due procedure by July-August. We cannot say whether the spectrum auction will happen by then, but we will be ready in the second half of next fiscal. When we say 2020, it doesn't mean the whole country will have 5G but it will start. Field trials are going on," Sundararajan said.

Telecom players, including Airtel, Vodafone Idea, have been demanding postponement of an auction while Reliance Jio is in favour of it. Incumbents have been under a severe financial crunch with declining profits and margins. Some players have demanded a relief package from the government, but it is unlikely that any such demand will be met, according to sources.

Trai has recommended auction of about 8,644 MHz of spectrum, including 5G at an estimated total base price of Rs 4.9 lakh crore.

In August, Trai recommended the auction of airwaves across seven bands including 4G and 5G. It had slashed the base price of the premium 700 MHz band by 43% to Rs 6,568 crore a unit and set Rs 492 crore per unit as the minimum rate for 5G.

Sundararajan said that the rollout of 5G services in the country will have an impact of $1 trillion on the economy. She was speaking at a telecom workshop with the representation from state governments, for resolving issues and fast tracking progress of BharatNet programme, which will connect 2.5 lakh gram panchayats through optical fibre.

"We aim to increase from 18 lakh to 50 lakh base transreceiver stations, and from 14 lakh kilometres of optic fibre cable to 55 lakh kilometres by 2022," Sundararajan said seeking active collaboration with all states.

The states should rationalise Right-of-Way (RoW) charges. The government also plans to bring in private telecom service providers and public sector companies for WiFi for last mile connectivity in BharatNet.

Telecom minister Manoj Sinha said, "With accelerated efforts over the last two years, we have reached halfway mark to connect 2.5 lakh gram panchayats."

NEW TECH BECKONS

  • Rs 4.9L cr – Estimated total base price for the auction
     
  • 8,644 MHz – Spectrum, including 5G, should be auctioned, as per Trai
     
  • 43% – Base price of the premium 700 MHz band was slashed
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